Correlation Between Hyster Yale and Agrify Corp
Can any of the company-specific risk be diversified away by investing in both Hyster Yale and Agrify Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hyster Yale and Agrify Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hyster Yale Materials Handling and Agrify Corp, you can compare the effects of market volatilities on Hyster Yale and Agrify Corp and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hyster Yale with a short position of Agrify Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyster Yale and Agrify Corp.
Diversification Opportunities for Hyster Yale and Agrify Corp
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hyster and Agrify is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Hyster Yale Materials Handling and Agrify Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrify Corp and Hyster Yale is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hyster Yale Materials Handling are associated (or correlated) with Agrify Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrify Corp has no effect on the direction of Hyster Yale i.e., Hyster Yale and Agrify Corp go up and down completely randomly.
Pair Corralation between Hyster Yale and Agrify Corp
Allowing for the 90-day total investment horizon Hyster Yale Materials Handling is expected to under-perform the Agrify Corp. But the stock apears to be less risky and, when comparing its historical volatility, Hyster Yale Materials Handling is 6.39 times less risky than Agrify Corp. The stock trades about -0.14 of its potential returns per unit of risk. The Agrify Corp is currently generating about 0.65 of returns per unit of risk over similar time horizon. If you would invest 319.00 in Agrify Corp on August 30, 2024 and sell it today you would earn a total of 5,136 from holding Agrify Corp or generate 1610.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hyster Yale Materials Handling vs. Agrify Corp
Performance |
| Timeline |
| Hyster Yale Materials |
| Agrify Corp |
Hyster Yale and Agrify Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hyster Yale and Agrify Corp
The main advantage of trading using opposite Hyster Yale and Agrify Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyster Yale position performs unexpectedly, Agrify Corp can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Agrify Corp will offset losses from the drop in Agrify Corp's long position.| Hyster Yale vs. Alamo Group | Hyster Yale vs. Titan International | Hyster Yale vs. Terex | Hyster Yale vs. Oshkosh |
| Agrify Corp vs. MYR Group | Agrify Corp vs. Granite Construction Incorporated | Agrify Corp vs. Construction Partners | Agrify Corp vs. Great Lakes Dredge |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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